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Legal Update

New Regulations For The Hiring Of Foreign Consultants In Construction Activities

21 November 2007
Mayer Brown JSM Legal Update


On 9th August 2007, the Prime Minister issued Decision No 131/2007/QD-TTg ("Decision 131"), promulgating the regulations for the hiring of foreign consultants in construction activities in Vietnam, which became valid on 6 September 2007.

Full Update

According to Decision 131, consultancy services in construction activities in Vietnam include construction planning, construction surveying, the elaboration of investment projects on work construction, work construction design, management of work construction investment projects, supervision of work construction, selection of contractors in construction activities and a number of other construction consultancy services in accordance with Vietnamese law.
Investors may decide on whether or not to hire and how to hire foreign consultants to provide construction consultancy services related to work construction investment projects. The use of foreign consultants must be specified in the investment decision for work construction investment projects.

Foreign consultants must provide and prove their legal status and professional capacity when they provide construction consultancy services in Vietnam.

Foreign consultants must be selected in compliance with Vietnam's current bidding law and Decision 131.

Expenses for hiring foreign consultants are determined according to person - per - month estimates (according to international practice) or by percentage. The estimate of costs to hire foreign consultants is the aggregate expenses necessary to complete the hired construction consultancy service, including expenses for experts and other related expenses, including payable taxes according to current law.

Foreign consultants must be hired via consultancy contracts signed between consultancy contractors and investors of work construction investment projects. Foreign consultancy contractors may not assign their contracts in any form.

Author: Thanh Nguyen

For further information, please contact:

Name: Dao Nguyen
Phone: +84 8 3822 8860
Fax: +84 8 3822 8864

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